1.Education 2.Social Security 3.Environment  
4.Housing 5.Women   6.Religion  
7.Tourism and Leisure              
7. Tourism and Leisure
According to the 2003 White Paper on Leisure (*1) released by the Japan Productivity Center for Socio-Economic Development (*2), spending for leisure activities—expenses for eating out, durable goods (vehicles, furniture, etc.), culture and entertainment, sports, traveling, and pocket money—rose 0.5% on the year to ¥82.96 trillion in 2002, marking the first gain in six years. The growth was largely due to growth in areas related to gambling, such as pachinko pinball and slot machines. But most sectors, such as sports and tourism, continued to record declines, reflecting the lingering economic downturn and deflationary trend.
Due to an increase in the number of slot machines, the pachinko market grew 5.1%. In addition, the lottery market rose 2.1%, helping to boost the leisure market category. But overall, 48 of the 78 sectors surveyed in the study showed market contractions. For instance, sports activity markets shrank 3% as people stayed away from sports, like golf, that require time and money, and instead favored activities such as exercise. As for leisure-related areas expected to see growth, the white paper cited household pets, cellular phone use, and activities such as walking.

Travel
According to the 2003 white paper on tourism (*3), the number of Japanese who traveled abroad in 2002 rose 1.9% from the previous year to 16.52 million. The United States came first in the destination ranking, followed by China, the Republic of Korea, Hong Kong and Thailand. The number of Japanese traveling abroad has steadily increased since Japanese overseas tourism was liberalized in 1964. The largest drop was marked in 2001 following the terrorist attacks in the United States on September 11 and the US-led military operations in Afghanistan. In the opposite direction, 5.24 million foreigners visited Japan, exceeding the five million mark for the first time. During 2002 Japanese spent ¥4.6 trillion abroad, including passenger transportation, while foreign visitors spent ¥1.4 trillion in Japan, resulting in a relative outflow from Japan of ¥3.2 trillion, which has contributed toward shrinking the country's surplus. As for 2003, the war in Iraq and the outbreak of the Severe Acute Respiratory Syndrome (SARS) weighed heavily on the travel industry.
Meanwhile, the number of domestic sightseeing trips involving overnight stays during 2002 decreased slightly to an average of 1.41 trips per person, marking five consecutive years of decline. Japan's domestic tourism comes in three major waves: the winter holidays around New Year, the so-called golden week of consecutive holidays in late April and early May, and the summer holidays in July and August. In order to promote long-weekend travel and other leisure activities among the Japanese people, the Revised National Holidays Law, popularly known as the Happy Monday Law, came into effect in 2000.

Luxury Tours Favored Among Seniors
High-priced overseas package tours are selling strongly in Japan as tours featuring nothing but low prices do not attract repeat clients, while demand for tours offering better hotels and new tourist spots are growing, especially among the elderly. JTB Corporation (*4), for example, attracted 5,000 people to its eight-day package tours to Venice and three other Italian cities in 2002, up 40% over the previous year, though the travel agency conducted no special sales campaign. The tour, which JTB began more than seven years ago, is offered for an average of ¥300,000 per person and is known for providing high-quality hotels and meals.
Other travel agencies are also stepping up their offerings of luxury tours, some of which are even priced at more than ¥10 million. The growth of such demand is being fueled by the expanding number of people aged 50 and older, who generally have higher disposable income to spend on travel than the younger generation.

"Visit Japan" Campaign
In January 2003, Prime Minister Junichiro Koizumi set a goal of doubling the number of foreign travelers to Japan to 10 million by 2010, and the government has earmarked ¥2 billion for a "Visit Japan" campaign to spearhead the country's drive to become a top tourist destination.(*5) To date, Japan has been far from a popular destination for international travelers. While some 16 million Japanese go abroad every year, only 5 million foreigners come as visitors. Japan ranks somewhere on the 30-40th level bracket in terms of popularity among globe-trotting tourists, lower than China or the Republic of Korea.(*6)
In addition to expectations that tourism could accelerate cross-border flow of people as well as goods and money, efforts to promote tourism have the advantage of spreading knowledge and information about Japanese society and culture to the rest of the world. Koizumi's new panel on tourism promotion is an initial step in a government-led drive to make Japan a serious competitor on the international travel market. The climate for such a campaign has never been better, with the number of overseas travelers from China and other East Asian countries expected to surge as their economies continue to grow. In 2002, the number of visitors from China and the Republic of Korea increased by 15.6% and 12.2% respectively. Travelers from other parts of Asia accounted for 65% of the 5.24 million foreigners visited Japan in 2002.

*1. https://www2.jpc-sed.or.jp/files00.nsf/276697182031a3fd4925672c001a56da/
1e76c8bc2bd1d43849256d7c002c054b/
$FILE/_a22bnc44mu4899h9g6co3gc9i_.doc

*2. http://www.jpc-sed.or.jp/
*3. http://www.mlit.go.jp/hakusyo/kankou-hakusyo/h15/images/02.pdf
*4. http://www.jtb.co.jp/
*5. http://www.japanwelcomesyou.com/
*6. http://www.mlit.go.jp/kisha/kisha02/01/011224_3/011224_3.pdf


Theme Parks in Struggle for Survival
The country's major theme parks, popular spots for Japanese families and young lovers to spend their holidays, are struggling to find ways to survive in a time when many of them are suffering stalled revenue growth. Heavy debt burdens, due to massive initial investments, pose another problem plaguing many theme parks throughout the country. With banks under increasing government pressure to dispose of bad debts, the parks will have to weather an even tougher environment to survive.
In February 2003,the failure of Huis Ten Bosch (*1), the Dutch theme park opened in Nagasaki Prefecture in 1992, symbolized the difficulties that many theme parks are facing today. It was the second largest resort-related bankruptcy in Japanese history, on the heels of Sea Gaia (*2), another Kyushu-based project which failed in 2001.
Despite the generally weak performance among theme parks, Tokyo Disneyland (*3), by far the most successful theme park in the country, celebrated its 20th anniversary in April 2003. According to Oriental Land Company (*4), which operates the theme park in Chiba Prefecture just outside the capital, Tokyo Disneyland, coupled with its neighbor Tokyo Disney Sea, which opened in September 2001, attracted 24.82 million visitors in fiscal year 2002, up 13% from a year earlier.(*5) Over 260 million visitors have poured through the gates in the two decades since opening.
In March 2001, Universal Studio Japan, another Hollywood-oriented movie theme park, opened in Osaka. The park is operated by the USJ Company, and a consortium of local government and domestic and foreign companies. Initially, USJ drew more-than-projected crowds. But the park has been suffering a setback in its popularity following a series of safety-related scandals, revealed in a decline of the number of visitors in summer 2002.

*1. http://english.huistenbosch.co.jp/index.html
*2. http://www.seagaia.co.jp/index_e.htm
*3. http://www.tokyodisneyresort.co.jp/index_e.html
*4. http://www.olc.co.jp/en/utility/sitemap.html
*5. http://www.olc.co.jp/company/guest/index.html


Karaoke
With the popularity of karaoke in Japan fizzling in an oversaturated market, the number of booths in karaoke parlors fell nationwide for five consecutive years after peaking in 1996. In 2002, there was a marginal rise from a year earlier to 137,000, although the number of visitors remained unchanged at about 48 million (*1), according to the All-Japan Karaoke Industrialist Association.(*2) Karaoke room operators are competing harder than ever to attract customers by providing more advanced music systems.
A decade after on-demand karaoke systems hit the market, upgraded models are showing up at karaoke parlors, restaurants and bars with internet-based functions that automatically adapt the range or speed of music to the singer. Some models even invite budding pop stars to take part in online musical auditions. Industry leader Daiichi Kosho (*3), for example, introduced in October 2003 the commercial-use BB cyber DAM system, which transmits the customer's voice via broadband networks to the firm's musical data distribution center. The center then sends the customer feedback on the chances of becoming a star based on the singer's voice and picture, which are sent over the network separately and critiqued. The system provides a service in which 10 or so well-informed judges, including producers and composers, assess a singer's talent for a ¥3,000 fee. The company also sponsors a satellite-based TV audition program for new singers in which customers can take part from karaoke rooms. Meanwhile, Taito Corporation (*4), a manufacturer of video game machines for amusement arcades, released the sophisticated Lavca karaoke in April 2003, which automatically recognizes a song's tempo and the voice quality of the singer and adjusts the musical accompaniment by speeding it up or slowing it down. It also allows customers to sing a new song while listening to a model vocal performance. Another function enables customers to insert their favorite sounds into the accompaniment.
*1. http://www.japan-karaoke.com/05hakusyo/p1.html
*2. http://www.japan-karaoke.com/index.html
*3. http://www.dkkaraoke.co.jp/
*4. http://www.taito.co.jp/